AUSTRALIA’S “ONLY HOPE”

Dominion, Volume 24, Issue 110, 3 February 1931, Page 9

AUSTRALIA’S “ONLY HOPE”

Public Looks to Lyons and Moderates

EFFECT OF PARKES BY-ELECTION

Opposition Will Support New Cabinet

United Press Association.— By Electric Telegraph.—Copyright

(Rec. February 2, 8 p.m.)

Sydney, February 2.

Hie consensus of opinion to-day, after reflection upon the Parkes by-election result Is that Australia’s only hope lies tn the reconstruction of a Federal Cabinet of moderate Labour members under Mr. J. A. Lyons’s leadership.

Mr. J. G. Latham, Leader of the Opposition, already has indicated that the Nationalists are prepared to give the fullest support to a Government imbued with the will and determination to face the budgetary, general economic, and financial position along safe and sound lines. This suggestion recently was rejected by the extremists in the Federal Labour Caucus. In the light of Saturday’s poll the Scullin Ministry is regarded ' as having been condemned by many Labour supporters for dropping Messrs. Fenton and Lyons, for the reinstatement of Mr. Theodore, and for its failure to give effect to the party's policy.

Summing up the views from all quarters, it may be said: “The responsible! Government of Australia in her blackest hour actually is the irresponsible government of a faction which is making the country its plaything. Behind Theodore is the shadow of Mungana, and behind a Scullln-Theodore Cabinet is the shadow of Australia’s ruin.

The demand is not for a Coalition Government, but for a straight-out Lyons Labour Government pledged to honest finance and speedy action to meet the present position.”

The corrected figures for the byelection are:—

O. W. C. Marr (Nationalist) 31,227 J. M. Martin (Labour) .... 22,394 R. C. Blake (Economic Reform) 986 E. G. Tripp (Communist) .. 382 Informal 1,431 The electorate comprised 63,550 voters. Reasons for Defeat Leaders of the National Party agree with the defeated Labour candidate that the principal factor in Mr. Marr’s success in the Parkes by-election was the failure of the Federal Government to give effect to its promises. “The people have expressed their disappointment with Mr. Scullin as much as anything,” said Mr. Marr. “Instead of facing the issues as the people expected him to do after he returned’from England he linked up with the extreme element.” Mr. Latham said: “The vacillation and weakness of the Government has allowed Australia to drift to the very brink of disaster. The Government must act honestly and promptly.” The Deputy-Leader of the Opposition, Mr. Gullett, said: “The voice of Parkes may be taken as the voice of Australia. It Is also an indignant moral vote against Mr. Theodore as Treasurer.” Two Main Issues. “The Labour Party has suffered a crushing defeat at the Parkes by-elec-tion,” says the “Sydney Morning Herald.” “The result shows a swing of more th,an 8000 votes from Labour since the 1929 election. “The two main issues at the election were the question of financial reform and the reinstatement of Mr. E. Gr. Theodore as Federal Treasurer. “The 'electors by their vote left no doubt about public opinion on both issues. | “A feature of the election was the heavy support accorded the Nationalist candidate in what were regarded as Labour strongholds.” Mr. Marr,, the successful candidate, said: “The re-entry of Mr. Theodore made my majority larger than It would otherwise have been.” Crucial By-Election. The “Herald,” editorially, says:— “There has never been any by-election in Australia so anxiously awaited by the whole Commonwealth, not because a Government defeat could materially affect the Government’s nominal majority, but because this by-election was an accepted test of public opinion on the issue of inflation. The verdict on that, has been decisive. It will be received with an interest in Britain as keen as that in Australia. Every State Government which issued the Melbourne Conference agreement with Mr. Scullin will hail Mr. Marr’s victory as a sign that the Australian people, will endorse that agreement, whenever it is put to them. The resignation of two Ministers who bore successfully the full brunt of the extremists’s attack on Cabinet;, during Mr. Scullin’s absence speaks more tellingly than any Ministerial excuses, and the resignation by a South Australian country member from the party is a clear sign of the feeling outside the cities. . .. “Mr. Scullin may try to discount Parkes by saying that it is not a Labour seat, but he cannot discount these resignations. Will he now implement the Melbourne Agreement?

Where Lang Stands.

“The Herald” adds: “Mr. Lang and his colleagues are as- much concerned with Labour’s crushing defeat as are Mr. Scullin and Mr. Theodore. New South Wales is the principal State in the Commonwealth. One of the main scandals in the breaking up and repudiation of the Melbourne Agreement was Mr. Lang’s attitude to it and his contemptuous treatment of the Loan Council in .public, while accepting doles from it in private. “While the Premiers of the other States have been steadily carrying out their programme of the Melbourne Agreement by retrenchment and hard saving. Mr. Lang neither retrenched nor saved to any extent. His Budget is still a minus quantity. He has piled up taxation until even his best supporters have turned upon him, and in Parkes they in effect bracketed him with Mr. Scullin and Mr. Theodore. He has received as truly a vote of want of confidence in this State as if he had put his fate to the test of another general election.

Scullin’s Statement.

Messages from Canberra state that acute reactions in the Federal Labour ranks following the Parkes poll may lead to Mr. Scullin’s being assailed by his supporters for not adopting a bolder policy. “Another delicate situation splitting his party further asunder is imminent,” says the “Pictorial.” "it seems almost certain that the now proposed ‘mild inflation” will be drastically revised by Cabinet.” The Prime Minister regards the result of the Parkes by-election as of no significance. “There is nothing sensational in it,” he said. “Parkes was never regarded as a Labour seat. Mr McTiernan, who is personally well known throughout the electorate, won it at the last election during Mr. Marr’s absence abroad.” Frantic efforts are being made to avert or postpone the 10 per cent, reduction of the basic wage which, it is realised, will antagonise many who supported the Labour Party at the last elections. Lt. u stated ijt Cautenta

that the Attorney-General, Mr. F. Brennan, even endeavoured to interview the Arbitration Court judges on the matter. Drastic defence economies are receiving consideration. Cabinet Reshuffle. Following the resignations of Messrs. Fenton and Lyons from the Federal Mlnlstery, the Prime Minister has announced a reshuffle of portfolios as follow: — Mr. A. E. Green, of Western Australia, becomes Postmaster-General. Senator J. J. Daly, of South Australia, becomes Minister of Defence. Mr. F. M. Forde, of Queensland, becomes Minister of Customs. Mr. Green was originally Minister of Defence, and Senator Daly vice-presi-dent of the Executive Council. Mr. Forde was nn assistant Minister. EMPHATIC VERDICT What Result Has Shown SOBER FINANCES WANTED ('‘Times” Cables) (Rec. February 2, 8 p.m.) London, February 1. “The Times” in a leader says: “The crushing defeat of Labour in the Parkes by-election is bound to have a steadying effect on the Commonwealth’s financial policy. It will be taken throughout Australia as an emphatic vote of censure on Scullin’s attempts to maintain unity of party by conciliating the extremists. , “Possibly the experience of Lang s Administration has helped to convince the electors that there are worse evils than retrenchment. -A typical constituency has shown that it wants its'finances to be run on sober and honest lines and that it is opposed to anything even savouring of inflation." According to another London message the “Daily Mail” in a leader on Mr. Martin’s defeat at Parkes says it is a definite warning to Labour caucus extremists that Australia will not sanction inflation and repudiation. It may influence Mr. Scullin to reco.nsider the appointment of Mr. Theodore, which has caused uneasiness to Australia s countless well-wishers in Britain. “PARKES HAS SPOKEN” Public Opinion Gauged COMMENT IN MELBOURNE (Rec. February 2, 9 p.m.) Melbourne, February 2. A “momentous victory” is the way the Melbourne “Argus” describes the outcome of the by-election. It adds that no better'electorate could have been chosen for a test vote, comprising as It does electors of all classes. Parkes has spoken as Australia would speak if it had the opportunity.

PRICES IMPROVE

Stock Exchange Reaction

BY-ELECTION “A TONIC”

(Rec. February 2, 9.30 p.m.)

Sydney, February 2. As an aftermath of the Parkes byelection buyers of Commonwealth bonds raised their limits to-day for every issue well above Saturday’s level, in some instances twenty shillings, while often there was a margin of 40/- between buying and selling quotations. Banks and leading industrial securities also reacted to the better tone on the Stock Exchange, where the result of the poll served us a tonic to brokers and the investment market. STRIKE FAVOURED Protest of Railway Union Sydney, February 2. A mass meeting of members of the Australian Railway Union decided in favour of a general strike as a protest against the 10 per cent, reduction in the Federal award rates. Resolutions couched in strong .terms were curried condemning the Federal and State Labour Governments. CABIN ET‘ CON SIDERS. A special meeting of the Federal Cabinet was held at Canberra yesterday to consider the railway men’s threat of a general strike ns a protest against the reduction of the basic wage and the rationing of work as applied by the New South Wales State Government. Cabinet also went into the question ns to whether the general cut in the Public Service wages should be continued.

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